Hindalco shares gain over 2% as US arm Novelis set to launch roadshow for $945 million IPO

Shares of Aditya Birla group company Hindalco Industries Ltd rose up to 2% on Wednesday, May 29, after its United States-based subsidiary Novelis Inc announced the launch of a roadshow for its initial public offering (IPO) of 4.5 crore shares.

Hindalco shares jumped more than 2% to hit a high of ₹697 per share on NSE in morning trade. As of 12:00 pm, Hindalco shares traded at ₹697.25 apiece, up 2.3% on NSE

Leading aluminium, copper and metals producer Hindalco Industries in a release said that its wholly-owned subsidiary Novelis Inc has announced the launch of a roadshow for the initial public offering (IPO).

Novelis’ sole shareholder A V Minerals (Netherlands) NV, which is an arm of Hindalco Industries, is offering 4,50,00,000 shares of the US-based metal company at an estimated price of $18 per share to $21 per share. At the upper end, A V Minerals (Netherlands) is expected to garner $945 million from the IPO.

Novelis expects the selling shareholder to grant the underwriters an option to purchase up to an additional 67,50,000 common shares to cover over-allotments, the release stated.

Novelis has applied to list its common shares on the New York Stock Exchange under the symbol “NVL”.

Novelis, a leading aluminium products and solutions provider and the world’s largest recycler of aluminium, filed papers with the Securities and Exchange Commission, for its IPO. A V Minerals (Netherlands) owns 100% of Novelis and post-IPO, the stake will come down to 92.5%.

Novelis operates a network of advanced rolling and recycling facilities across North America, South America, Europe and Asia. The company reported a turnover of $16.2 billion in FY24.

Hindalco has posted nearly a 32% jump in consolidated net profit to ₹3,174 crore for the March quarter, driven by higher margins and volumes across aluminium and copper business segments.

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